How long after buying land do you have to build in QLD?

Buying your first residential land seems like an easy decision to build your dream home but, there are some important aspects that you need to grasp prior to purchase.

The buying process can be confusing so we have laid out some steps to help grasp the ins and outs of the procedure as well as answering the important question of: how long after buying the land do you have to build your new home?

Benefits of buying land

It’s considerably cheaper
You have the flexibility to design your ideal home to suit your needs
It will increase in value with future residential and commercial developments
May qualify for QLD Government concession on duty you pay
You do not have to build your property immediately

Queensland Government first home vacant land concession

The first home vacant land concession is a great way to get your foot in the door when purchasing property. But, there's some fine print that you should know about before taking advantage of this opportunity as laid out below:

Eligibility

To apply for a first home vacant land concession, you must:

have never claimed the first home vacant land concession on another project
have never held an interest in a residence anywhere in Australia or overseas
be at least 18 years of age (we explain below when we may waive this requirement)
be paying market value if the vacant land is valued between $320,001 and $399,999
build your first home on the land, move in with your personal belongings and live there on a daily basis within 2 years of settlement (this time cannot be extended)
only build 1 home on the land
be certain there is no building, or part of a building, on the land when you acquire it
not dispose (sell, transfer, lease or otherwise grant exclusive possession) of all or part of the property before you move in.**

To keep the benefit of the first home vacant land concession in full after you move in, you must not dispose of all or part of the property (including granny flats) within 1 year. A partial concession may apply if you dispose within 1 year.**

How much will you pay?

The first home vacant land concession means no duty is payable if the value of your property transfer falls below $250,000. If you are above the $250k threshold, the concession is calculated at the transfer duty rate minus the first home vacant land concession. You can use the Queensland Government transfer duty estimator to find out how much duty you may have to pay.

How to claim

In addition to your contract and valuation, you will need to complete the following when lodging them for stamping:

Claim for transfer duty concession first home vacant land (Form D2.7)
Identity details annexure for each non-Australian transferor and transferee
Form 1 Transfer and Form 24 from Titles Queensland .

The conveyancing process

The process of buying land can be drawn-out and arduous. Conveyancing is when the owner officially transfers ownership of the land or property to you. The initial offer is just the first step then the signing of the contract of sale and payment being the final stage. Although these sound like just a few simple steps to follow, the paperwork can seem astounding and never ending for first time buyers!

Top tips for buying land in Queensland

Water source

Water and sewerage utilities are a must for all properties and according to Urban Utilities Queensland, most vacant land requires approval prior to development. You will require approval if you are creating a new connection, disconnecting existing ones, alteration or if you are increasing demand on the current network.

Soil quality and composition

It is important to test the soil prior to purchase as some soil is reactive and can shrink or expand in varied weather conditions. The soil must be able to support your home so ensuring the land has good soil is one of the most important aspects of the build.

Access

Access needs to be considered early in your consideration process. Is there access from a main road? Is the approach to your land accessible for the excavators and large vehicles required for the build?

Elevation and shape

Vacant land blocks can come in all shapes and sizes and whilst some can be practically perfect, others can render the land futile. The easiest shape to build on is a rectangle or square shape piece of land. Be aware that subdivided plots of land are usually in a peculiar shape, which makes building more difficult.

Also, be aware of where the land is in relation to sea level as this can have an effect on the earthwork necessary prior to building. The slope of the block can influence the cost as well as you may be required to excavate more earth and fill parts to level it.

References:

** QLD Government first home concession grant
https://www.lionlandmarketing.com.au/news/what-you-need-to-know-before-buying-land/
https://www.eplace.com.au/lifestyle/things-to-consider-before-buying-land-in-brisbane

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